Indian Kanoon - Search engine for Indian Law

10. Vide notification dated 25-8-2020, published in the official gazette, the State Govt. directed that, from the Petitioner No.1, Janpad Cess shall be collected @ 1% of the stamp duty instead of value of the property.

11. The DIG, Registration Jabalpur issued a letter dated 23-1-2020 to the Registration Office, Sidhi directing to recover Stamp Duty on the order of NCLT Allahabad dated 2-3-2017 as per Section 19-A of Indian Stamp Act. In pursuance to the aforesaid letter, a notice dated 24-2- 2020 was issued by the Collector of Stamps, Sidhi under Section 48-B read with Section 40 of Indian Stamp Act, directing the Petitioner No.1 to produce the original copy of order of NCLT Allahabad i.e., instrument, failing which it shall be presumed that the original instrument has not been properly stamped and proceedings will be initiated under Section 40 of Indian Stamp Act.

12. The Petitioner No.1 filed its preliminary reply on 27-3-2020 and apart from other grounds, also pleaded specifically that the original order of NCLT Allahabad cannot be produced. Thereafter, the Petitioner No.1 further filed its detailed reply on 27-7-2020, claiming that it has no liability to pay Stamp Duty as it has already paid in Mumbai. In the alternative it was pleaded that in view of notification dated 3-7-2017, the Petitioner No.1 is only liable to pay Rs. 25 cr. as a cap has been imposed on the stamp duty. Again on 11-9-2020, the Collector Stamps, Sidhi issued a notice dated 11-9-2020 under Section 48-B read with Section 40 of Indian Stamp Act, thereby directing the petitioner to produce the original order of NCLT Allahabad, otherwise, it shall be presumed that the original instrument has not been properly stamped and the proceedings shall be initiated under Section 40 of Indian Stamp Act.

d. Janpad Cess of Rs. 24,61,05,500/- @ 1% of the value of Immovable assets;

e. Penalty of Rs. 137,62,62,911/- @ 2% for 43 months.

15. Challenging the impugned order passed by the Collector of Stamps, Sidhi, it is submitted by Counsel for Petitioners, that as per the provisions of Section 3(bb),19-A of Indian Stamp Act, the instrument would be chargeable on the date when it is "received" in State of Madhya Pradesh. In the present case, although the Petitioner had earlier claimed that the instrument i.e., order dated 2-3-2017 passed by NCLT Allahabad was brought in State of M.P. on 24-10-2017, but in fact it was "received" in M.P. on 5-8-2019. Therefore, in view of notification dated 3-7-2017, the Petitioners were required to pay Rs. 25 Cr.s only as the maximum cap of Rs.25 Crores as provided in notification dated 3-7- 2017. Similarly, in view of the notifications dated 6-10-2018 and 25-8- 2020, the Janpad Cess @ 1% was chargeable on stamp duty and not on the value of the assets. Since, the Collector of Stamps, Sidhi had not initiated any proceedings under Section 33 and 38 of Indian Stamps Act, therefore, should not have imposed any penalty. It is further submitted that the principles of Natural Justice were violated, thereby causing serious prejudice to the Petitioner because the show cause notice which was given to the petitioner No.1 only spoke about filing of original instrument, failing which a presumption shall be drawn that the original instrument is not properly stamped and proceedings under Section 40 of Indian Stamp Act would be initiated. It is submitted that in fact, the Collector of Stamps, Sidhi had instructed the Petitioner to perform an impossible act because the order of the NCLT Allahabad was in the file of the case, and could not have been produced by the Petitioner No.1.

30. The Collector of Stamps, Sidhi by letter dated 30-7-2019, directed the Petitioner No.1 to submit copies of Orders passed by the NCLT Mumbai and Allahabad pursuant to which it has taken over the unit of JAL located at Bela Distt. Rewa and at Baghawar Distt. Sidhi. By reply dated 5-8-2019, the orders of NCLT Mumbai and Allahabad were submitted by the Petitioner No.1.Thereafter, DIG, registration by his letter dated 23-1-2020 written to the Registration Office, Sidhi, directed to recover stamp duty on the order of NCLT, Allahabad as per Section 19-A of Indian Stamp Act. Accordingly, a show cause notice under Section 48-B of Indian Stamp Act was issued to Petitioner No.1 on 24- 2-2020, thereby directing it to produce the original instrument, failing which it shall be presumed that the original instrument is not properly stamped. The Petitioner No.1 filed its reply to this show cause notice, and pleaded that since, the original instrument i.e., order dated 2-3-2017 is in the file of the NCLT Allahabad therefore, it is not possible for it to produce the original one. Thereafter, by drawing inference as provided under Section 48-B of Indian Stamp Act, the Collector of Stamps, Sidhi proceeded further under Section 40 of Indian Stamp Act.